NET LOSS PER SHARE

3 Months Ended

Mar. 31, 2024

Basic net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period.

Diluted net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period, plus potentially dilutive common shares, consisting of stock-based awards and equivalents, and convertible debt. For the purposes of this calculation, stock-based awards and convertible debt are considered to be potential common shares and are only included in the calculation of diluted net loss per share when their effect is dilutive. The Company uses the treasury-stock method to compute diluted earnings per share with respect to its stock-based awards and equivalents. The Company uses the if-converted method to compute diluted earnings per share with respect to its convertible debt. Under the if-converted method, the Company assumes any convertible debt outstanding was converted at the beginning of each period presented when the effect is dilutive. As a result, interest expense, net of tax, and any other income statement impact associated with the 2027 Convertible Notes, net of tax, is added back to net loss used in the diluted earnings per share calculation. Additionally, the diluted shares used in the diluted earnings per share calculation includes the potential dilution effect of the convertible debt if converted into the Company’s common stock. As the Company was in a loss position for the three months ended March 31, 2024 and March 31, 2023, the Company’s potentially dilutive stock-based awards and convertible debt were not included in the computation of diluted net loss per share, because to do so would be anti-dilutive.

The following table reflects the calculation of basic and diluted loss per common share for the three months ended March 31, 2024 and 2023 (in thousands, except for per share amounts):


	Three Months Ended March 31,
	2024		2023
Basic and diluted net loss per share
Net loss	$	(4,510)	$	(3,484)
Weighted-average common shares outstanding	94,980		51,005
Basic and diluted net loss per share	$	(0.05)	$	(0.07)

The following table reflects outstanding potentially dilutive common shares that are not included in the computation of diluted net loss per share, because to do so would be anti-dilutive, for the three months ended March 31, 2024 and 2023 (in thousands):


	Three Months Ended March 31,
	2024	2023
Convertible notes	9,768	14,489
Stock-based awards and equivalents	8,422	8,271
Total potentially dilutive common shares	18,190	22,760